The potential Rs 52,200 crore public offering for its telecom unit, Jio Infocomm, would shatter all previous records in India's market history.
Mukesh Ambani’s Reliance Industries is reportedly gearing up for India's biggest IPO ever, considering a public offering for its telecom giant, Jio Infocomm. According to a Bloomberg report, the conglomerate aims to raise over Rs 52,200 crore ($6 billion) in a move that would reshape the country's capital markets and set a new benchmark for public listings.
The IPO Plan and Scale The plan, though still in its initial stages, involves selling a 5% stake in Jio Infocomm to raise an estimated Rs 52,200 crore. A Bloomberg report indicates that Reliance has already initiated informal discussions with the Securities and Exchange Board of India (SEBI) to navigate the regulatory process. If it proceeds, this listing would not only dominate the domestic market but also rank among the largest global public offerings of the year.
Regulatory Hurdles and Market Impact A key challenge for the conglomerate is SEBI's rule requiring a 25% minimum public shareholding. Reliance has reportedly sought an exemption, expressing concerns that the domestic market may lack the depth to absorb such a large float. This regulatory waiver will be a critical factor in determining if and how the IPO can proceed as envisioned.
A New Record If successful, the Jio IPO would shatter all previous domestic records. The current largest IPO in India is Hyundai Motor India's Rs 28,000 crore offering from earlier in 2024, which surpassed the milestone previously set by LIC. At over Rs 52,000 crore, Jio's public offering would be nearly double the size of the current record holder, marking a monumental event for the Indian stock market.
While the market is buzzing with anticipation, Reliance Industries has not yet made an official announcement regarding the IPO timeline. The plan's progression now hinges on the outcome of informal discussions with SEBI and a final decision from the company's leadership. If it moves forward, the offering could hit the markets as early as next year, marking a historic moment for Indian finance.
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